Iraq Prepares to Ramp Up Oil Exports as Strait of Hormuz Reopening Nears

Iraq is accelerating preparations to boost oil exports from its southern ports ahead of the formal reopening of the Strait of Hormuz, scheduled for June 19, 2026. The anticipated resumption of maritime traffic through the critical chokepoint has eased global supply concerns, pushing Brent crude prices below $80 per barrel. Salim Al-Rikabi, spokesman for Iraq’s oil ministry, confirmed the country is “completing the process of nominating tankers to load Iraqi crude oil” and coordinating with buyers to resume exports “as soon as maritime navigation returns to normal.”

State marketing firm SOMO has already received requests from buyers specifying which tankers they intend to use for loadings, with some shipments reportedly in motion even before the U.S.-Iran interim peace agreement is finalized. Iraq typically delivers oil to buyers at its ports, leaving transportation logistics to customers. The country shipped 1 million barrels per day in the first half of June, a stark contrast to May’s 98,000 barrels per day, according to SOMO data and Bloomberg tanker tracking. Total Iraqi exports averaged 3.5 million barrels per day from March 2025 to February 2026.

The formal reopening of the Strait of Hormuz—following a deal between the U.S. and Iran—could trigger a surge in global oil supply, offering relief from the historic disruptions that have gripped the market for approximately 110 days. The International Energy Agency (IEA) projects a “gradual” recovery in exports, though the mere anticipation of increased flows has already driven Brent crude below $80, levels last seen in early March 2026.

Regional producers, including the United Arab Emirates and Kuwait, are also ramping up shipments, with tankers increasingly turning off transponders to avoid detection. The speed of export recovery will hinge on the movement of existing tankers out of the Gulf and the arrival of empty vessels, as well as the pace at which countries can restore shuttered production capacity. Al-Rikabi noted that restoring Iraq’s oil fields to prewar output levels will take time, with timelines varying by field, though export infrastructure remains undamaged.